New Xeon to have more cache for less cash

The Register is reporting that Intel will launch Xeon processors with 1MB of L3 cache next week. The new chip will debut at 3.06GHz on a 533MHz front side bus and will reportedly retail for only $690. Intel will also slash the price of its current Xeon line to coincide with the new chip's launch. The price of Xeon processors between 2.8 and 3.06GHz is set to drop at least 30% with slower chips seeing price cuts in the 10% range.

With its extra L3 cache, the new Xeon should perform better against AMD's Opterons, but AMD may be more concerned with Intel's new Xeon prices. Currently, the Opteron 240 is a steal of a deal at $260 on Pricewatch, but the 242 and 244 versions of the chip sell for $707 and $825, respectively. If Intel's reported price cuts materialize, 3.06GHz Xeons would be available for $433, 2.8GHz chips for only $316, and 2.66GHz versions for only $256.